GBP/USD Price Forecast March 16, 2018, Technical Analysis

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Updated: Mar 16, 2018, 05:50 UTC

The British pound has fallen during most of the trading session coming into the New York open, but the American seem to be willing to pick this market up again, and I think at this point we could probably go chasing the 1.40 level again. Breaking above there would be a huge signal the start buying.

The British pound has initially fallen during trading on Thursday but continues to find support at the previous downtrend line. Because of this, I think that the market is eventually going to build up the necessary momentum to break above the 1.40 level. If we do, then I think that the market is free to go towards the 1.43 level above. I recognize that this market is probably going to take several attempts to finally clear that level, but if we do break above the 1.40 level, it’s likely that we will continue to see noise in the market that will continue to provide upward momentum. If we can break above the 1.43 level, then it becomes a huge signal to start going long as it would be the market clearing major resistance barriers.

GBP/USD Video 16.03.18

On the other hand, if we were to break down below the 1.38 handle, I think at that point we may unwind quite a bit and I would be short. I previously had suggested that perhaps we needed to go even lower to break down significantly, but at this point I think that the “floor” has moved higher. Because of this, I am bullish, but I also recognize that we have a lot of work to do to have the buyers take over. Expect a lot of volatility, but ultimately the volatility should give us opportunities to pick up value on short-term pullbacks.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.